Report to the 2018 Legislature Annual Report
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REPORT TO THE 2018 LEGISLATURE ANNUAL REPORT FROM THE HAWAI‘I NATURAL ENERGY INSTITUTE HRS 304A-1891 December 2017 AnnualHawai Report ‘i NaturalHawai‘i Natural Energy Institute InstituteDecember 2017 School of Ocean and Earth Science and Technology University of Hawai‘i at Mānoa Annual Report to the 2017 Legislature HRS 304A-1891 SUBJECT: Annual Report on Activities, Expenditures, Contracts Developed, Advances in Technologies, Work in Coordination with State Agencies and Programs, and Recommendations for Proposed Legislation, required in accordance with HRS 304A- 1891 (Act 253, SLH 2007). SUMMARY: The Hawai‘i Natural Energy Institute (HNEI) conducts essential energy research relevant to Hawai‘i and the world. Research projects focus on identifying technically sound, cost effective solutions and practical strategies that can be implemented to deliver commercially viable renewable energy, improve grid reliability and resilience, and enhance energy efficiency. The ultimate goal is to achieve a stable and cost- effective energy mix for Hawai‘i, while reducing Hawai‘i’s dependence on oil and other fossil fuel resources. HNEI brings together people from a wide range of disciplines and different types of organizations to tackle the urgent and complex sustainable energy needs of the state and the nation. Analysis, research, engineering, economics, and policy are integrated to develop technology, strategies and policies that will have significant positive impact on the energy mix. 2 hnei.hawaii.edu Annual Report Hawai‘i Natural Energy Institute December 2017 HNEI is committed to supporting the State, Federal agencies and industry in planning and implementing clean energy initiatives. HNEI’s activities can be grouped into five core functions: • Research & Development • Technical Validation & Implementation • Analysis & Modeling • Education & Training • State Energy & Policy Support Figure 1. HNEI’s inter-related functions used to maximize collaboration and leverage resources. State Energy & Policy Support HNEI was established in 1974 to coordinate and undertake the development of natural energy sources for Hawai‘i. In 2007, ACT 253 established HNEI by statute and expanded its mandate to explicitly include coordination with state and federal agencies; and the demonstration and deployment of efficient end use technologies including those that address peak electric demand issues. Act 253 also established the Energy Systems Development Special Fund (ESDSF) and directed that it be managed by HNEI. Three years later, in 2010, Act 73 authorized 10 cents of the $1.05 tax imposed on each barrel of petroleum product imported into Hawai‘i be deposited into the ESDSF. HNEI, in collaboration with the State Energy Coordinator, develops expenditure plans for the ESDSF to maximize the value of these funds to meet needs and opportunities within the state, and to capitalize on matching funds from federal and private sources. 3 hnei.hawaii.edu Annual Report Hawai‘i Natural Energy Institute December 2017 In executing its mandate, HNEI has assumed an important role within the state to reduce Hawai‘i’s dependence on fossil fuels, serving as the implementing organization for several large, public-private partnerships to develop, deploy and demonstrate renewable energy systems. HNEI continues to forge strong partnerships with industry, state and national organizations creating a thriving synergy that expands resources and accomplishments for all involved. HNEI works closely with federal funding agencies, industry, the State Energy Office, State legislators, Public Utilities Commission and the Congressional delegation, providing stability and enhancing the benefits afforded to residents of Hawai‘i and beyond. HNEI has become recognized as an independent organization providing trustworthy and practical information to support the safe, reliable, and economically viable development of renewable energy technologies and systems. The foundation of HNEI’s strength lies in its people and partners. The diversity of talents, education, experience, and the entrepreneurial spirit of this team creates flexibility in performing a range of renewable energy development responsibilities. HNEI also serves as a critical bridge between State and Federal initiatives, supporting for example the State’s 100% renewable portfolio standard and clean transportation initiatives. In summary, HNEI’s responsibilities go beyond traditional academic research, playing a significant role in public-private partnerships and supporting analyses for state energy policies. Research & Development (R&D) As an Organized Research Unit within the University of Hawai‘i at Mānoa (UH), HNEI has maintained a strong core research effort. HNEI’s faculty and staff are truly multidisciplinary, with a wide diversity of backgrounds. For efforts requiring additional expertise, HNEI also works closely with other units on campus, including the School of Ocean & Earth Science & Technology (SOEST), College of Engineering, College of Tropical Agriculture and Human Resources, and College of Social Sciences. This strategic collaboration allows HNEI to conduct increasingly comprehensive and complex research. With a deliberate focus on remaining flexible to support the dynamic needs of renewable energy development, HNEI’s direction continues to evolve. 4 hnei.hawaii.edu Annual Report Hawai‘i Natural Energy Institute December 2017 Technology Validation & Implementation (TV&I) HNEI faculty and staff have been successful in transferring patented HNEI technology in a variety of areas to demonstration scale, and even commercial implementation. An important aspect of HNEI’s TV&I mission is to transition innovative solutions through the development phases, including “proof of concept”, demonstrations, and finally into commercialization and adoption of technologies that can support Hawai‘i’s energy goals. HNEI identifies technologies of interest and then validates and assesses their practicality and applicability for Hawai‘i’s infrastructure. These activities are frequently informed by internal analysis and modeling efforts and supported by HNEI R&D activities. HNEI’s TV&I projects usually involve industrial partnerships and often include cost share. An example is the ongoing effort to evaluate emerging grid scale and distributed battery energy storage technologies as a solution for transmission and distribution level constraints associated with high penetration of intermittent renewable energy technologies. Analysis & Modeling HNEI conducts and supports analyses and modeling to forecast scenarios for Hawai‘i’s energy mix. These analyses are critical to identifying optimal and realistic pathways toward meeting Hawai‘i’s clean energy goals. Results from these studies are used to inform state policy and help identify innovative demonstration and validation projects in areas such as biofuels, grid integration, and hydrogen. Education & Training As a research institute, HNEI does not have its own academic program but has active partnerships throughout the university. Faculty members develop and present courses for academic units in SOEST, the College of Engineering, and the College of Tropical Agriculture and Human Resources. HNEI faculty support and supervise graduate students and post docs across these departments. HNEI also supports the Asia-Pacific Technology and Education Partnership (APTEP), funded by the Office of Navy Research (ONR). 5 hnei.hawaii.edu Annual Report Hawai‘i Natural Energy Institute December 2017 Summary of Activities, 2017 Hawai‘i Natural Energy Institute School of Ocean and Earth Science and Technology University of Hawai‘i at Mānoa Director: Richard E. Rocheleau Staffing: Permanent Faculty (FTE) 9 Other permanent staff (APT) 3 Temporary Faculty 21 Other temporary staff (APT, RCUH) 15 Training (a) 16 (a) Includes post-doctoral fellows, graduate and undergraduate students, and visiting scientists. SUMMARY OF CONTRACTS AND ACTIVITIES: HNEI is a nationally acknowledged research leader with major activities in areas such as hydrogen and fuel cells, biofuels, ocean resources, and grid integration. While continuing to conduct conventional and applied research, HNEI has, in accordance with HRS 304A-1891, also undertaken a pivotal role within the state including identification, evaluation, and testing of advanced energy technologies and systems aimed at reducing Hawai‘i’s dependence on fossil fuels. HNEI serves as the implementing and/or managing partner for several major public/private partnerships to deploy and demonstrate renewable energy systems to meet Hawai‘i’s energy needs. These efforts support both the goals of the State of Hawai‘i and HNEI’s project partners. A synopsis of select HNEI activities follows: 6 hnei.hawaii.edu Annual Report Hawai‘i Natural Energy Institute December 2017 HNEI Energy Policy and Innovation In 2017, HNEI created a priority focus of energy policy and innovation to guide Hawai‘i and the Asia Pacific regional energy transition efforts. The vision for this concentration of focus is through energy policy, innovation, and technology integration, HNEI will contribute to economic growth, energy security and a cleaner environment. This will be accomplished by the strategic integration of analysis, research, engineering, economics, and policy to achieve an optimal energy transformation in Hawai‘i and to support similar efforts throughout the world. Work Products HNEI was successful in 2017 in creating analytical work products and strategic alliances towards energy transition efforts. The